Consultant InsuranceGeneral Liability Insurance for Consultants

Independent consultants help clients grow their business and establish their brand presence. As an expert in a largely creative and innovative field, you enjoy a relatively low risk of third-party injuries and property damage. But no matter your expertise — whether you offer marketing research and consulting or you specialize in human resources consulting — accidents can happen. For example, if you have an office that clients visit, the potential for slips and falls is always present. Should you handle client property at any point, there's the chance that property could be damaged.

Many consultants choose General Liability Insurance to protect their business in case the improbable happens. This coverage not only meets contract stipulations for most clients, but it also offers your business a safeguard against the cost of paying out of pocket if an accident occurs and your company is liable for the property damage or bodily injuries a third party experiences. It can also provide legal funds if the claim escalates into a lawsuit against your business.

Even small incidents can result in costly lawsuits, and without General Liability protection, your business could suffer a serious financial loss. For more details about GLI and how this foundational coverage benefits your consulting business, keep reading.

Protection for Independent Consultants

General Liability Insurance: Protection for Independent Consultants

Because your business is built on serving clients, there's always the risk that accidents can happen, no matter how remote the chance may be. And given today's dependence on the litigation system to settle business disputes, most independent consultants choose to carry General Liability even if client contracts do not require it. After all, it only takes a single lawsuit to potentially devastate a small startup.

General Liability Insurance for consultants covers damage to property or injury to people. For example, if you have an office and a visitor stops by, any bodily harm they incur on your business premises could become your financial responsibility. Say this visitor trips over the welcome mat and breaks a bone. Your business could be sued for medical expenses. If your business handles client property, your General Liability policy can protect that property while it is in your care or custody.

Your policy protects your marketing, management, or IT consulting business from claims brought against your business due to your employees' actions as well. With this safety net in place, you can continue your consulting work with the peace of mind that your business can survive a costly lawsuit and still have the means to keep your business on its feet. Legal fees alone can easily exceed hundreds of thousands of dollars, which is why General Liability Insurance is a key component in any risk management plan.

Key Details

General Liability Insurance for Consulting Businesses: Key Details

When you're ready to protect your business from expensive liability claims and unpredictable accidents, your insureon agent can help you create a custom policy for your specific risks and coverage needs. General Liability is an excellent starting point for your business protection plan thanks to its three basic categories of business liability: bodily injury, property damage, and personal or advertising injury (e.g., slander, libel, and copyright infringement). Keep reading to lean more.

Bodily Injury Claims

Though your company is generally considered a low-risk operation, General Liability Insurance is an essential safety net in case an unexpected injury happens to a third party on your business premises. As bodily injuries are among the most expensive liability claims a business can face, your business can only stand to benefit from this part of the policy's coverage, especially if you operate out of an office that welcomes clients and visitors.

No matter what safety precautions you take, accidents can happen, and seemingly innocuous injuries can flare into costly lawsuits. If someone sues your business for bodily damage, your GLI can cover legal funds, including lawyer fees, settlements or judgments, bond premiums, medical expenses, and more, depending on your policy limits. Even if the lawsuit is ultimately deemed a meritless case, your General Liability policy can still cover the costs associated with defending your business in court.

Your General Liability policy can also pay for medical costs, funeral expenses, and court-awarded compensation in the extreme case that a third party's injury or illness results in death. However, your own employees are not covered by this policy. If one of your employees suffers an injury or ailment on the job, you'll need Workers' Compensation Insurance for that protection.

Property Damage Claims

Your consulting business will likely have to handle your client's property in order to do your work. This may include files, computer equipment, products, and more, depending on your field and the clients you work with. The property damage coverage your General Liability Insurance provides can protect others' property and assets while they are in your custody or care. If one of you or one of your employees accidentally damages that property, your client could feasibly file a lawsuit against your consulting business. That's when your General Liability coverage would kick in to pay for the costs of a covered claim, up to your policy limits.

Personal and Advertising Injury Claims

If your marketing, human resources, or IT project consulting business uses advertising or promotional materials to attract clients, you'll benefit from the personal and advertising injury portion of your General Liability policy. This coverage can protect your business from allegations of non-physical damages to another person or entity, including copyright and brand infringement, libel, or slander.

Safeguard Your Consulting Business

Safeguard Your Consulting Business

If you're ready to manage risks and give your business the financial security to grow, you may be able to begin coverage in as little as 24 hours. Our all-online process makes it easy for you to receive competitive quotes from A-rated insurance carriers in minutes. Get started now with insureon's easy online application.